Question

I have received an incorrect answer to this problem this morning. I really need to have help in solving for the number 9 and 11 journal entries. The previous answers sent back to me were incorrect.

Please show your calculations so I can understand how you arrived at the solutions. I have solved everything but the journal entry numbers for 2-9 and 2-11. I need to know what numbers are used to complete the solution for these two journal entries. Instructions for number 9 and 11: Number 9 states “Record the transfer of completed products from production to finished goods inventory.” Number 11 states: “Record cost of goods sold for May.”

Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories.

	Beginning Inventory			Ending Inventory
Raw materials inventory	$	60,000		$	92,500
Work in process inventory		435,000			515,000
Finished goods inventory		633,000			605,000

The following additional information describes the company's production activities for May

Raw materials purchases (on credit)	$	250,000
Factory wages cost (paid in cash)		1,530,000
Other overhead cost (Other Accounts credited)		87,000
Materials used
Direct	$	157,500
Indirect		60,000
Labor used
Direct	$	780,000
Indirect		750,000
Overhead rate as a percent of direct labor		115	%
Sales (on credit)	$	2,500,000

2. Prepare summary journal entries dated May 31 to record the following production activities during May: (9) goods transferred from production to finished goods, and (11) record cost of goods sold for May.

No	Date	General Journal	Debit	Credit
9	May 31	Finished goods inventory
		Work in process inventory
10	May 31	Accounts receivable	2,500,000
		Sales		2,500,000
11	May 31	Cost of goods sold
		Finished goods inventory

Answer 1

Journal entry

No	Date	General Journal	Debit	credit
9	May 31	Finished goods inventory	1754500
		Work in process		1754500
10	May 31	Account receivable	2500000
		Sales		2500000
11	may 31	Cost of goods sold	1782500
		Finished goods inventory		1782500